According to A. Izgorodinas, an economist, the European economy is performing better than initially anticipated, even following the onset of the conflict in Iran. During an appearance on the “Económic Afternoons” radio show on “Žinių radijas,” the economist suggested that this improved performance is partly attributable to increased defense financing and is also correlated with forecasts of record industrial production.
While the economist stated that the current economic data presents challenges for “absolutely everyone,” he focused attention on a specific concern regarding energy reserves. One nuance, he noted, is the historically low level of gas storage filling across Europe. Currently, the storage level sits at approximately 60%, which contrasts sharply with the 90% recorded during the 2023-2024 period.
Despite these storage concerns, the economist expressed confidence that Europe will secure its necessary gas supply. However, he emphasized that the critical question remains the associated cost. He observed that gas prices are currently at a certain level, indicating that while supply might be managed, the economic viability of the energy source is a major point of discussion.
The overall commentary provided by the economist highlights a mixed economic picture, where robust industrial output is juxtaposed against underlying energy security and pricing pressures.
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